Misconduct and Systemic Risk

The global financial system is subject to emerging vulnerabilities from misconduct by traders and bankers as well as from developments in financial technology, Mark Carney wrote in a letter to leaders of the Group of 20.

The Bank of England Governor — writing in his capacity as the chairman of the Financial Stability Board — said the FSB was pursuing a “major” work programme that would study both remuneration and the possibility of increasing individual accountability for bad behaviour.

“The incidence of financial sector misconduct has risen to a level that has the potential to create systemic risks by undermining trust in both financial institutions and markets.”
Mark Carney